SEI Files Exemptive Application for ETF Multi-Share Class

Rhea-AI Summary

SEI (NASDAQ:SEIC) has filed an exemptive application with the SEC to establish an ETF multi-share class structure for mutual funds it administers and distributes. This initiative aims to provide investment flexibility and growth opportunities for investment advisors using SEI's Advisors' Inner Circle (AIC) platform.

Unlike most applications filed by investment advisors, SEI's application is filed through its mutual fund administration and distribution subsidiaries. If approved, investment advisors using SEI's AIC platform can leverage SEI's exemption without filing their own applications, saving costs and time.

The AIC platform currently serves 45 clients and 121 funds with over $100 billion in assets under management as of September 30, 2024.

Positive

• Platform serves 45 clients and 121 funds with over $100B AUM
• Cost savings for investment advisors using AIC platform
• Potential expansion of service offerings through ETF multi-share class structure

Negative

• None.

Insights

Market Research Analyst

The filing for an ETF multi-share class structure represents a strategic move to enhance SEI's competitive position in the fund administration space. With $100 billion in assets under management across 121 funds and 45 clients, this initiative could significantly expand SEI's market reach. The structure would allow investment advisors to offer ETF share classes alongside traditional mutual fund shares without filing separate exemptive applications, potentially saving substantial time and costs.

This development is particularly noteworthy as it differs from typical applications by being filed through SEI's administration and distribution subsidiaries rather than an investment advisor. This approach could create a competitive advantage by offering a turnkey solution for advisors using the AIC platform, potentially attracting more assets and clients while generating additional fee revenue for SEI.

Financial Analyst

While this filing doesn't guarantee immediate financial impact, it positions SEI strategically in the evolving fund industry landscape. The cost savings for investment advisors could make SEI's platform more attractive, potentially leading to increased platform adoption and higher recurring revenue streams. The initiative aligns with industry trends toward ETF structures and could help retain existing clients while attracting new ones, protecting and potentially growing SEI's $11.1 billion market cap.

The ability to offer ETF share classes without additional regulatory hurdles could provide SEI's clients with greater flexibility in product development and distribution, potentially leading to increased assets under management and associated fees for SEI's administration services.

Fund Structure to Provide Investment Flexibility and Growth Opportunities for Investment Advisors

OAKS, Pa., Dec. 12, 2024 /PRNewswire/ -- SEI^® (NASDAQ:SEIC) today announced the filing of an exemptive application with the Securities and Exchange Commission (SEC), seeking approval to establish an ETF multi-share class structure of mutual funds administered and distributed by SEI.

As industry demand for this fund structure has increased, SEI has evaluated the ETF multi-share class model and how it can help effectively meet the needs of its proprietary mutual funds and clients utilizing its Advisors' Inner Circle Fund^® (AIC) platform. While most exemptive applications to date have been filed by the investment advisor to a set of mutual funds, SEI's application is filed on behalf of SEI's mutual fund administration and distribution subsidiaries. If granted by the SEC, this structure will benefit investment advisors using SEI's AIC platform, as those investment advisors would be able to rely upon SEI's exemption rather than incurring the additional cost and delay of filing their own exemptive application with the SEC. The AIC, SEI's turnkey, series trust platform, serves 45 clients and 121 funds with more than $100 billion in assets under management.¹ 

Mike Beattie, Managing Director of SEI's Investment Managers business, said:

"We've always been committed to enabling our clients' success by evolving our platform to provide the operational infrastructure and expertise that help them meet investors' demands and remain competitive in an evolving industry. With a strong demand for the ETF multi-share class structure from the unaffiliated third-party investment advisors on our AIC platform, we believe we can more efficiently deliver this model's benefits through our approach to this filing."

Chapman and Cutler and KCG Advisory Group, LLC supported the preparation of SEI's exemptive application with the SEC.

¹As of Sept. 30, 2024.

About SEI^®
SEI (NASDAQ:SEIC) delivers technology and investment solutions that connect the financial services industry. With capabilities across investment processing, operations, and asset management, SEI works with corporations, financial institutions and professionals, and ultra-high-net-worth families to help drive growth, make confident decisions, and protect futures. As of Sept. 30, 2024, SEI manages, advises, or administers approximately $1.6 trillion in assets. For more information, visit seic.com.

About Chapman and Cutler LLP
Chapman and Cutler is among the leading law firms to the investment management industry, including numerous ETF sponsors. As a law firm focused on finance, Chapman has been representing investment companies since the 1960s, when they helped form the first tax-exempt unit investment trust. Today, Chapman's Investment Management team represents fund issuers and boards of trustees operating in every area of the investment company space and collaborates with industry organizations and market participants leading advocacy initiatives to advance ETF products and regulatory reform.

About KCG Advisory Group
KCG Advisory Group stands as a distinguished consultancy firm with 30 years of industry expertise, specializing in providing strategic guidance to asset managers, wealth advisors, and investment platforms. Their track record in execution, strategic vision, and meticulous planning has consistently delivered accelerated asset growth, revenue generation, margin expansion, vehicle development, and product innovation. At the core of their services is a commitment to assisting its prestigious clients in exploring innovative ways to diversify their businesses, effectively manage assets, allocate resources, analyze market trends, and enhance resource efficiency to meet and exceed asset growth targets.

Company Contact:	Media Contact:
Emily Baldwin	Kerry Mullen
SEI	Vested
+1 610-676-3262	+1 917-765-8720
ebaldwin@seic.com	kerry@fullyvested.com

 

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SOURCE SEI Investments Company

FAQ

What is the purpose of SEI's (SEIC) exemptive application with the SEC?

SEI filed the application to establish an ETF multi-share class structure for mutual funds it administers and distributes, aiming to provide investment flexibility and growth opportunities for investment advisors.

How much assets under management does SEI's AIC platform have as of September 2024?

SEI's Advisors' Inner Circle (AIC) platform manages over $100 billion in assets as of September 30, 2024.

How many clients and funds does SEI's AIC platform serve?

SEI's AIC platform serves 45 clients and 121 funds.

How will investment advisors benefit from SEI's ETF multi-share class structure?

Investment advisors using SEI's AIC platform can rely on SEI's exemption without filing their own exemptive applications, saving both cost and time.

What makes SEI's exemptive application different from others?

Unlike most applications filed by investment advisors, SEI's application is filed through its mutual fund administration and distribution subsidiaries.